22nd Century Group Exits Cannabis Industry, Closes Franchise Sale Deal
22nd Century Group, a biotechnology company focused on plant genetics and cannabis research, has announced the sale of its hemp/cannabis assets. The sale, along with the assignment of a non-strategic hemp/cannabis asset in Colorado, is expected to reduce the company's debt by $3.2 million. An additional $2 million reduction will come from the buyer's payment of a secured promissory note. After these transactions, the remaining outstanding debt is expected to be approximately $8.8 million. The company's chairman and CEO, Larry Firestone, stated that the sale will help reduce operating costs and move the business towards a sustainable, cash-positive operating basis. The insurance proceeds from a fire at the company's manufacturing facility in Grass Valley will also be used to further reduce the debt.
